GSR partnership with Interhash

GSR partnership with Interhash

On 20 December 2019, GSR announced a partnership with Interhash, a mining services provider. Canaan, a cryptocurrency mining giant, aided the collaboration between digital asset trading and market-making leader and Interhash.

This partnership expected to lead the way to risk management and execution services to the mining network of Canaan.

Cristian Gil, the Co-Founder of GSR, said that the cryptocurrency industry is more volatile than any other business area, and many participants in the ecosystem are under-hedged or outright un-hedged against adverse price action.

He added, “Miners are a foundational component of the digital asset space, and have to consider many volatile factors when planning their future revenue streams.”

GSR has proposed to offer a suite of structured products to the mining counterparties, customized accordingly, beginning in January 2020. The risk management solutions provided expected to give miners protection against any losses and also the opportunity to earn an extra yield on their inventory. The product suite will consist of customized Swaps, Collars, and more custom-made products.

Furthermore, Cristian said that the cost of mining equipment and electricity is always in flux. Miners must also consider the asset’s mining difficulty and price. The unpredictability of their business models is unprecedented, so, naturally, this segment of the market is exploring ways to hedge their risk better.

“We are pleased to help build customizable risk management solutions alongside Interhash, who are global leaders in the industry,” he beamed.

Around USD 3B of Bitcoin will be mined in 2020 alone, at the present prices. Richard Rosenblum, a Co-Founder of GSR, further said that the market for hedging is small when compared to physical commodities markets. However, it is compelling for a variety of reasons.

He also pointed out that unlike traditional commodities, digital commodities are experiencing rapid growth currently. Plus, given Bitcoin’s ‘constant supply’ dynamics and other unique characteristics, new products are required to deliver quality risk management solutions to miners accurately.”

“We believe risk management will play an integral role in this industry as it matures. We are proud to partner with GSR, who have substantial financial expertise in this area and a proven track record in crypto finance.” the Global Marketing Director of Interhash, Cora Jiang said.

Most of the corporate players have hedging programs in traditional markets nowadays. In crypto, with the soaring portfolio sizes and growing capital expenditure, the initiative of the management to explore hedging now is a cautious one, now that the relevant resources are becoming available.

About GSR

Founded in 2013, GSR is the leader in market making and digital asset trading globally. The specializations are the provision of liquidity, customized products to sophisticated global investors, risk management strategies, etc. in the digital assets industry. They are among the oldest established institutional market makers for digital assets and one of the first few who developed digital asset derivatives, proprietary trading strategies, and algorithmic solutions. Their leadership team of veteran finance and technology consists of executives from IBM and Oracle, Goldman Sachs, Two Sigma, Nomura International, and have created one of the fastest, most robust, and transparent digital asset trading systems globally.

GSR works with traders, investors, token issuers, miners, and more than 30 cryptocurrency exchanges globally. As a founding member of The Association for Digital Asset Markets (ADAM), it leads to the establishment and maintenance of industry standards and protocols. It is to support the healthy development and evolution of the global digital assets industry. To learn more about GSR, please visit the link: www.gsr.io